Lately, the weak dollar has stimulated the economy negatively and has only helped U.S. exporters with their own profits. Before this economic turmoil, importing with nations like China was easier since was once known as a cheap, global factory. But now, it has been faced with their own hurdles in supplying other nations with goods. For one, there is less purchasing power in China with a weak dollar, which makes buying materials that much more expensive. In addition, exporting nations have cited rises in energy expenses, high labor costs, spikes in wages and losses in tax incentives as reasons for raising prices. Also as host to the 2008 Summer Olympic Games, China has been pressured by several nations and their athletes in adapting to more environmentally conscious initiatives which has resulted in more factories closing down and less products available to purchase. In addition, food and raw material shortages have blanketed the world due to many government policies that have led to limiting production of agriculture, increases in bio-fuel projects and halts in exports. This trend may continue possibly for two to five years before a feasible recovery in terms of production, price and availability. Following the conclusion of the Olympics, there could be signs of relief; however it is not expected to last because of global supply and demand issues.

As a result of many of these difficulties, inflation has taken a hold of numerous supply and manufacturing businesses which rely on the production of raw materials for their products. Although many speculate a rebound in the economy, manufacturers and supply companies across the nation have struggled with the price hikes and cutting costs to adjust accordingly. Time will tell when exactly the U.S. economy and raw materials market will go back to a normal state but several of these issues are in direct correlation with each other. For example, a weak dollar hurts gas prices directly because oil is usually bought and sold in dollars. If the value of greenbacks goes down, then it costs more to purchase that same barrel of oil. At the same time, the weak dollar subsequently affects costs of shipping and transportation of supplies, production and final pricing.

To address the situation, the government is looking at ways to accelerate the economy but may be only left with two options. One would be to raise interest rates again which could make U.S. investments more lucrative to foreign investors. However there is a major concern that by raising interest rates, it could make matters worse for an already weak economy that is facing recession dangers. The other option is intervention, which involves buying U.S. dollars on international markets that can increase the value of the dollar worldwide and may alleviate economic perils gradually. Nevertheless, action by the government is not guaranteed and or expected for some time, therefore industries have to continue in modifying their business plans and adjusting to this evolving marketplace.